Bitcoin mines mull shifting out of China amid tighter regulations: Report

Some Bitcoin mines in Southwest China's Sichuan Province are still operating as usual

Many bitcoin mines are considering moving out of China to countries like the United States amid a crackdown on cryptocurrency trading and businesses, Chines daily Global Times reported.

Some mines in Southwest China's Sichuan Province, however, were still o operating as usual, the report said.

Moneycontrol could not independently verify the story.

Also read: An urgent need for India to enable cryptocurrency regulation

Cao Yin, managing director of Digital Renaissance Foundation and a bitcoin investor, told Global Times that some mines, especially those that run on thermal power, could shift to the US or Canada.

In his view, the shift began in 2017 but accelerated now with bitcoin miners seeking lower electricity rates and more friendly policies.

"It's possible that bitcoin mines may eventually move out of China, but production and exports of bitcoin mining machines won't stop in China because of market demands," Cao said.

Also read: Bitcoin closes in on $40K after Elon Musk's tweet: Check latest prices of 10 cryptocurrencies here

"Chinese miners account for over half of the global crypto network's processing power, and this will also weigh on the development of the global mining industry in the long run," another source told the publication.

There has been a growing concern over the energy used to mine the world's most popular digital currency. Tesla and SpaceX founder Elon Musk tweeted that he had “potentially promising talks" with North American bitcoin miners on the energy conservation efforts in mining the cryptocurrency. The tweet saw bitcoin rise to near the $40,000 level again.

Reuters reported that bitcoin, the world's largest cryptocurrency, rose more than 10 percent on May 24, bouncing back after a weekend sell-off.